COUNCIL chiefs have managed to slash rent arrears but the local authority is still owed a staggering £1.2m.

A report, to be considered by council committees this week shows that Halton's debt recovery service has managed to decrease arrears by 11.5% in the last 12 months.

However, the amount owed to the council by current and previous tenants is still £17,000 more than in 2002.

The £1,219,188 outstanding is made up of current rent arrears, former tenant arrears, housing benefit over-payments and arrears in garage rent.

Council chiefs claim that a change in policy is partly responsible for the increase in cash owed. Since 2002 court costs and bailiff fees have been recharged to tenant accounts.

A spokesman said: 'For tenants in arrears this practice has provided an extra incentive to make the necessary payments to avoid court action, which has resulted in a reduced number of court appearances.

'However, the effect of adding these additional charges increased arrears by more than £60,000 in 2002/03.'

The increase in the amount owed by previous tenants was put down to the council's decision to step-up eviction procedures against non-paying tenants.

Last November more than three-quarters of council tenants voted in favour of transferring from the council to Halton Housing Trust.

The 'yes' vote means Halton Housing Trust will spend around £129m on a programme of repairs and improvements for tenants' homes in the first 10 years after transfer. Cllr Marie Wright, executive Board member for Housing and Youth Services, said: 'The council believed transfer was the best way forward for the future and it had the support of all political parties on the council.

'We are delighted with the result.

'The council has worked hard to give tenants decent homes but, with the vote to transfer, the money will be available for the repairs and improvements the homes need.'